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Solving the Matching Dilemma

Solving the Matching Dilemma. Session 32 Tuesday, May 24, 2011 National Extension and Research Officers Administrative Conference Anchorage, Alaska. Solving the Matching Dilemma. Presented by: Adriene Woodin Branch Chief Awards Management Division

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Solving the Matching Dilemma

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  1. Solving the Matching Dilemma Session 32 Tuesday, May 24, 2011 National Extension and Research Officers Administrative Conference Anchorage, Alaska

  2. Solving the Matching Dilemma Presented by: Adriene Woodin Branch Chief Awards Management Division Office of Grants and Financial Management NIFA-USDA awoodin@nifa.usda.gov 202-401-4320

  3. Solving the Matching Dilemma • NIFA Programs with Required Matching • Matching Regulations • Definitions • Do’s and Don’ts • What’s Not Acceptable Matching • What is Allowable as Matching • Common Matching Costs and Required Information • Matching Commitment Documentation • Valuing Donations • Summary

  4. Programs With Required Matching • The RFA will contain details on whether or not matching is required and what those requirements are. • Programs requiring a matching commitment: • AFRI Equipment Awards • 100% of Federal Funds • Cash match only

  5. Programs With Required Matching • Beginning Farmer and Rancher Development Program • 25% of Federal Funds • Cash or in-kind • Third party contributions

  6. Programs With Required Matching • Specialty Crop Research Initiative (SCRI) • 100% of Federal funds • Cash or in-kind • Third Party Contributions • Allows unrecovered indirect costs as matching only on grantee provided matching costs

  7. Programs With Required Matching • Biomass Research and Development Initiative • 20% of total project costs for Research projects • 50% of total project costs for Demonstration projects • Total Project Costs consists of requested Federal funds and proposed matching • Cash or in-kind • Third-party contributions

  8. Programs With Required Matching • Higher Education Challenge Grants • 100% of Federal funds • Cash or in-kind • Third Party contributions • Community Food Program • 100% of Federal funds • Cash or in-kind • Third Party contributions

  9. Programs With Required Matching • Women and Minorities in STEM Fields • 100% of Federal funds • Cash or in-kind • Third Party contributions • Special Needs Program • 100% of Federal funds • Cash or in-kind contributions • No Third-Party contributions permitted

  10. Programs With Required Matching • These programs require matching only when the subject area is commodity specific: • Geospatial and Precision Technologies • Integrated Programs • 100% of total Federal funds • Cash or in-kind • Third-party contributions

  11. Matching Regulations • Governing regulations are: • Office of Management and Budget (OMB) Circular A-110 (found at 2 CFR Part 215) • Sub-part C: Post Award Requirements, Financial and Program Management • Section 23. Cost Sharing or matching • http://www.nifa.usda.gov/business/awards/ombcirculars.html • USDA 7 CFR Part 3019 • Section 3019.23 Cost Sharing or Matching • http://www.nifa.usda.gov/business/awards/fedregulations.html

  12. Matching Regulations • Award document will reference 7 CFR part 3019 which is USDA’s implementing regulation for A-110 • Both provide guidance on allowable matching costs and how to value services and donated items

  13. Definitions • Cash Matching: The recipient’s cash outlay, including the outlay of money contributed to the recipient by non-Federal third-parties. • Examples: The recipient’s cost to purchase an item of equipment for use on the project; Salaries for staff time committed to project; purchase of supplies; travel of project staff.

  14. Definitions • In-Kind Contribution: The value of non-cash contributions of property or services. Includes use of facilities, use or donation of equipment, supplies, and other non-expendable property.

  15. Definitions • Third Party Matching: Any contribution to the project by an organization other than the recipient. • Can include cash or in-kind contributions.

  16. Do’s and Don’ts • Funds used as matching for NIFA Awards: • Cannot be used as matching for another Federally-assisted project or program • May not be provided by another Federal award or agency unless specifically authorized by Federal Statute • Must be for costs incurred specifically for project during project period

  17. Do’s and Don’ts • Entire amount of required matching must be secured at time of award • No “contingencies” allowed (i.e. Pending approval, submission, or earning) • Includes Continuation Awards • First year plus future year commitments must be secured in advance • The sources and amounts of all matching should be summarized as part of the budget justification as a separate narrative (not combined with the Federal funds narrative)

  18. What’s Not Acceptable Matching? • Funds provided from another organization for another, similar project. • Can’t use funds twice • The value of equipment previously purchased by, or donated to the recipient. • The purchase or donation must be specifically for the project • Equipment must be used specifically for this project and pro-rated to project usage

  19. What’s Not Acceptable Matching? • Income expected to be earned during the project period. • All matching must be in place at time of award. • The income will not have been earned by then. • Indirect Costs over the allowable limit (with the exception of the SCRI Program). • When indirect costs are limited by program authorization, the recipient cannot claim more than the allowable limit.

  20. What’s Not Acceptable Matching? • Some matching may be deemed unallowable during the review process requiring additional matching resources. • Award may be reduced or may not be issued if required matching is not met.

  21. What’s Allowable as Matching Costs? • Any costs which would normally be allowable under the applicable cost principles (OMB A-21 or A-122) for Federal funds would be allowable as matching • Except for unrecovered indirect costs (with one exception) • Costs must be specifically identifiable and directly benefiting the project.

  22. Common Matching Costs and Required Information • Note: the same level of details required for justifying Federal funds is required for justifying matching funds. • Salaries/wages for project personnel -provide the annual or hourly rate of pay, time commitment (number of hours, percentage of effort) and the task to be completed • Salary rates deemed excessive may need to be justified

  23. Common Matching Costs and Required Information • Materials or Supplies – provide a list of materials or supplies expected to be purchased and an estimated cost for the item(s). • Travel costs – provide the purpose and destination (if known), number of trips, number of travelers, and the cost per trip.

  24. Common Matching Costs and Required Information • Office Rent - when there is a need for an office away from the main campus, office rent may be charged as a direct cost to the award. • Facility must not be owned by the recipient organization and rent can not be included as a part of the indirect cost pool. • Rent must be pro-rated to the project if space is shared. • Provide monthly rental cost, square footage, and usage information.

  25. Common Matching Costs and Required Information • Equipment costs – provide details of the type of equipment and how it will be used. • For an equipment purchase – include the purchase price. • For donated used equipment - only the depreciated value of the equipment at the time of donation may be used.

  26. Common Matching Costs and Required Information • Equipment costs (cont’d): • For donated new equipment – full purchase value of newly purchased equipment if purchased specifically for the project. • For loaned equipment - the value may not exceed the fair rental value. • Provide details on how the value was determined and the amount of time it will be used.

  27. Common Matching Costs and Required Information • Volunteer staff time – same information as for salaries. • Rate of volunteer labor should be consistent with that paid for similar work within the recipient’s organization or with that paid for similar work in the labor market. • Excessive rates of pay for volunteer labor may need to be justified.

  28. Valuing Donations • Value of donated property (transfer of property ownership) should be based on fair market value at time of donation. • Value should be established by an independent appraisal

  29. Valuing Donations • Value of donated space (usage) should not exceed the fair rental value of comparable space as established by an independent appraisal of similar space in the same area. • Value is not based on purchase price

  30. Matching Commitment Documentation • Recipient Matching Documentation: • Letter of Commitment signed by the Authorized Representative • Must include the dollar amount of the commitment and the dates of involvement (project period) • Budget justification should include required detail information on matching costs • How are matching funds being spent?

  31. Matching Commitment Documentation • Third-Party Cash and In-Kind Contributions: • Recipient organization should show third-party contributions in “Other Direct Cost” section of the budget and budget narrative. • If recipient organization is using the third-party cash match to pay for own expenses, the costs would be distributed in the applicable budget categories (i.e.travel, salaries, etc.) where they will be spent. • Details on how funds are being spent must be provided. • Same level of details required as for Federal funds.

  32. Matching Commitment Documentation • Third-Party Cash and In-Kind Contributions: • Cost-sharing commitments by a Third-Party must include Pledge Agreement from the contributing organization’s AR, counter-signed by the recipient organization’s AR. • Counter-signature not required if submitted with the proposal • Pledge agreement should also state whether the matching is cash or in-kind

  33. Pledge Agreements • Separate pledge agreement required for each donor. • Submitted on donor letterhead with the name, address and telephone of organization • Signed by AR of donor organization with title of person signing listed

  34. Pledge Agreements • Pledge agreements must include: • Title of project for which the donation is being made • The dollar amount or good faith estimate of the donation or contribution • At statement the donation will be made during the grant period (dates)

  35. Pledge Agreements • Third-Party Cash Contributions: • Project costs to be incurred and paid by the Third Party • Include information on how the funds will be spent (i.e. salary, travel, materials and supplies – provide details on costs)

  36. Summary • It is important that all matching is documented with letters of commitment and cost justifications for both recipient and Third-party donors. • An award with required matching cannot be issued until all matching has been verified as allowable, reasonable and secured. • Continuation awards require matching verification for the entire length and amount of the award.

  37. Questions? For any questions regarding matching costs or any other grant issues, contact: • Awards Management Division – 202-401-4986 • Adriene Woodin, Branch Chief – 202-401-4320 or awoodin@nifa.usda.gov

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